Inheritance Tax Comes into Effect in January
The government hopes the tax will lessen wealth accumulation among families
The Thailand inheritance and gift tax is set to take effect on January next year reports Bangkok Post.
Under the laws which were first published in 2015, inheritance taxes will be charged to the beneficiaries for whom the rates are 5% of the amount above 100 million baht for descendants and 10% of the same base for others.
For gifts, the tax rate is 5% of the portion above 20 million baht when the beneficiaries are descendants. For non-descendant beneficiaries, the same rate applies but is calculated from the portion above 10 million baht.
According to Bangkok Post, only “houses and land; bank deposits; shares and debentures; automobiles” will be taxed.
Maj Gen Sansern Kaewkamnerd, a deputy spokesperson of the Prime Minister’s Office told Bangkok Post that the laws will incentivize the wealthy to donate more to charities and hopes that the laws will help minimize the wealth disparity in the country.
“We believe the laws will help reduce the income gap and bolster state revenue,” he said.
Thailand has a very large wealth disparity. Credit Suisse’s Global Wealth Report 2016 identified Thailand as the third most unequal country with 58% of the nation’s wealth controlled by the richest 1 per cent of people.
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